Russia and Ukraine officials say they met for negotiations, but their positions remain far apart, giving crude oil a boost beyond $100 a barrel.
. The agency expects production to fall by 3 million barrels per day from April, due to the sanctions and the voluntary"self-sanctioning" boycott by many buyers.
"This is the biggest upheaval for commodity markets since 1973," said Goldman Sachs' global head of commodities research Jeff Currie. A big difference between the oil crisis of '73 and now is that this is a buyer boycott, not a seller boycott, he said. Sanctions on Russian oil supply, months of on-and-off talks on the Iran deal, and worries about new Covid-19 lockdowns in China have all been driving factors of the oil market this week.
"No one development discretely drove oil prices, but the negative tone around the conflict as well as heightened volatility in commodity markets contributed," Deutsche Bank strategists said.increased margin requirements for commodities contracts, including oil futures. This led to further selling as more speculative players were forced to liquidate or scale back their positions, according to Kpler Research.
"Whilst taking some of the speculative heat out of the market is not necessarily a bad thing, the upshot is that the market may well not currently be correctly reflecting the real price risk, leading to the potential for further price spikes," Kpler analysts wrote in a note.
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